Net income and Diluted earnings per share in third quarter 2012 were
$654 million and $1.36, respectively. Net income and Diluted earnings
per share in third quarter 2011 were $643 million and $1.31,
respectively. Net income in third quarter 2012 and 2011 included $7
million ($0.02 per diluted share) and $133 million ($0.27 per diluted
share), respectively, of aftertax charges resulting from the
implementation of the previously disclosed business realignment and
other cost-saving initiatives and costs associated with the sale of land
in Mexico. Net income in third quarter 2011 also included an aftertax
gain of $135 million ($0.27 per diluted share) from the sale of the
Company’s non-core laundry detergent business in Colombia.

Excluding the above noted items in both periods, Net income in third
quarter 2012 was $661 million, an increase of 3% versus third quarter
2011, and Diluted earnings per share in third quarter 2012 was $1.38, an
increase of 5% versus third quarter 2011.

Gross profit margin was 58.4% in third quarter 2012 versus 56.2% in the
year ago quarter. Excluding the above noted items in both periods, Gross
profit margin was 58.6% in third quarter 2012, an increase of 180 basis
points versus the year ago quarter, as higher pricing and cost savings
from the Company’s funding-the-growth initiatives more than offset the
impact of increases in raw and packaging material costs and negative
foreign exchange transaction costs.

Selling, general and administrative expenses were 34.6% of Net sales in
third quarter 2012 versus 34.0% in third quarter 2011, as worldwide
advertising spending increased 1% versus the year ago quarter to $453
million. Advertising as a percent to sales increased 20 basis points to
10.5% from 10.3% in third quarter 2011.

Operating profit decreased 1% to $1,027 million in third quarter 2012
compared to $1,035 million in third quarter 2011. Excluding the above
noted items in both periods, Operating profit increased 3% to $1,037
million.

Net cash provided by operations year to date was $2,133 million compared
to $2,057 million in the comparable 2011 period. Net cash provided by
operations for 2012 includes higher income tax payments, higher payments
related to business realignment and other cost-saving initiatives and
the payment for the previously disclosed competition law matter in
France related to a divested detergent business, and lower voluntary
benefit plan contributions. Working capital as a percentage of Net sales
was 2.2%, up 160 basis points versus the year ago period. This increase
was primarily due to the timing of income tax payments and higher
accounts receivable.

Ian Cook, Chairman, President and Chief Executive Officer, commented on
the results and outlook excluding the 2012 and 2011 items noted above
and the costs of the Global Growth and Efficiency Program discussed
below, “We are very pleased to have achieved another quarter of strong
profitability with gross profit margin, operating profit margin and net
income as a percent to sales all increasing versus year ago, despite an
intense competitive environment and challenging macroeconomic conditions
worldwide.

“Our growth momentum continued on the top line as well, with organic
sales increasing a healthy 5.0% during the quarter, led by the emerging
markets where organic sales grew a robust 9.5%.

“We are delighted that gross profit margin increased by 180 basis points
during the quarter, the largest expansion we have seen in ten quarters.
This allowed for higher advertising spending behind Colgate’s brands
both in absolute dollars and as a percent to sales, which drove market
share gains around the world.

“Colgate’s global market shares in toothpaste and manual toothbrushes
are both at record highs year to date. Colgate’s share of the global
toothpaste market strengthened to 44.9% year to date, up 0.6 share
points versus year ago. Our global leadership in manual toothbrushes
also strengthened during the quarter with Colgate’s global market share
in that category reaching 32.7% year to date, up 0.8 share points versus
year ago.

“Looking ahead, we continue to be sharply focused on our aggressive
funding-the-growth programs and our strategic worldwide pricing
initiatives. We anticipate that the combined benefits from those
programs will continue to help us offset the impact of increases in raw
and packaging material costs and the transaction impact of negative
foreign exchange, and achieve gross margin expansion in 2012 within our
targeted range of 75 to 125 basis points.

“Overall, we continue to expect diluted earnings per share for 2012 to
grow at a double-digit rate, on a currency neutral basis. If average
exchange rates in the balance of the year were to remain at current spot
rates, currency translation would decrease full year diluted earnings
per share growth by approximately 6-7%.”

Global Growth and Efficiency Program

Separately, the Company announced a four-year Global Growth and
Efficiency Program (the “2012 Restructuring Program”) for sustained
growth. The program’s initiatives are expected to help Colgate ensure
continued solid worldwide growth in unit volume, organic sales and
earnings per share and enhance its global leadership positions in its
core businesses.

This four-year Global Growth and Efficiency Program is expected to
produce significant benefits in the Company’s long-term business
performance. The major objectives of the program include:

Becoming even stronger on the ground through the continued evolution
and expansion of proven global and regional commercial capabilities,
which have already been successfully implemented in a number of the
Company’s operations around the world.

Simplifying and standardizing how work gets done by increasing
technology enabled collaboration and taking advantage of global data
and analytic capabilities, leading to smarter and faster decisions.

Reducing structural costs to continue to increase the Company’s gross
and operating profit.

Building on Colgate’s current position of strength to enhance its
leading market share positions worldwide and ensure sustained sales
and earnings growth.

Implementation of the 2012 Restructuring Program is projected to result
in cumulative pretax charges, once all phases are approved and
implemented, totaling between $1,100 and $1,250 million ($775 and $875
million aftertax), beginning with approximately $110 to $120 million
($90 to $100 million aftertax) in fourth quarter 2012. Savings are
projected to be in the range of $365 to $435 million ($275 to $325
million aftertax) annually by the fourth year of the program. The
expected savings represent a three to four year cash payback, on
average, with a targeted aftertax rate of return exceeding 30%.

Savings in 2013 should approximate $40 to $50 million ($30 to $40
million aftertax) effective in the latter part of the year. The
anticipated charges for 2013 are expected to amount to approximately
$260 to $310 million ($185 to $220 million aftertax.)

Initiatives under the program will focus on the following three areas:

Expanding Commercial Hubs – Building on
the success of this structure already implemented in several
divisions, continue to cluster single-country subsidiaries into more
efficient regional hubs, in order to drive smarter and faster decision
making, strengthen capabilities available on the ground and improve
cost structure.

Extending Shared Business Services and
Streamlining Global Functions – Implementing the Company’s
shared service organizational model, already successful in Europe, in
all regions of the world. Initially focused on finance and accounting,
these shared services will be expanded to additional functional areas
to streamline global functions.

It is expected that by the end of 2016, the 2012 Restructuring Program
will reduce the Company’s global employee workforce by approximately 6%
from the current level of 38,600.

Ian Cook, Chairman, President and Chief Executive Officer commented, “We
are living in a fast-changing world with many challenges including
slowing economies in many countries. This program will help us to move
forward from our current position of strength to continue to deliver
sustained, profitable growth over the long-term.

“This initiative offers us the opportunity to expand many of our already
successful programs. For example, we have seen extended growth in Latin
America where we have been managing the division with regional hubs for
many years. Additionally, in Europe, our financial shared service center
in Warsaw, Poland has significantly reduced structural costs for the
region.

“These positive experiences and our proven track record of implementing
a multitude of savings programs and reducing costs year after year give
us confidence in the ability of this program to fund even higher levels
of investment behind Colgate’s brands and strengthen our overall
commercial capabilities around the world.”

Specifically, reinvestment will be focused in the following four areas:

New Product Innovation and Brand Building
– Continuing our strong investment in research and product development
to ensure a robust pipeline of new products supported by effective
integrated marketing campaigns.

Enabling Technology and Analytics –
Intensify the use of existing and new technologies to enhance planning
systems, real-time collaboration and paperless interaction, within the
Company and with customers and suppliers, and to enhance analytic
capabilities in support of consumer insights, brand management and
commercial decision making.

Digital Engagement – Increasing consumer
engagement and loyalty by expanding our web-based capabilities,
including mobile and social media and e-commerce.

Mr. Cook concluded, “As we look ahead to 2013, while our global budget
process is still in its initial stages, based on the Company’s current
growth momentum, our confidence in this new efficiency program in
addition to our ongoing funding-the-growth and strategic worldwide
pricing efforts, we are planning for a return to our long-term target of
double-digit earnings per share growth on a dollar basis and another
year of gross margin expansion, excluding charges related to the 2012
Restructuring Program.”

At 11:00 a.m. ET today, Colgate will host a conference call to elaborate
on third quarter results and the announced restructuring program. To
access this call as a webcast, please go to Colgate’s web site at http://www.colgatepalmolive.com.

The following are comments about divisional performance. See attached
Geographic Sales Analysis and Segment Information schedules for
additional information on divisional sales and operating profit.

Operating profit in North America increased 3% in the third quarter of
2012 to $219 million, or 27.5% of Net sales. This increase in Operating
profit was due to an increase in Gross profit, which was partially
offset by an increase in Selling, general and administrative expenses,
both as a percentage of Net sales. This increase in Gross profit was
driven by higher pricing and cost savings from the Company’s
funding-the-growth initiatives, which were partially offset by higher
raw and packaging material costs. This increase in Selling, general and
administrative expenses was primarily due to higher advertising expenses.

Exciting new products planned for launch in the balance of the year
include a special edition of Colgate Max Fresh toothpaste, manual
toothbrush and battery toothbrush featuring images of the members of the
band One Direction.

Operating profit in Latin America increased 2% in the third quarter of
2012 to $371 million, or 29.8% of Net sales. This increase in Operating
profit was due to an increase in Gross profit, which was partially
offset by an increase in Selling, general and administrative expenses,
both as a percentage of Net sales. This increase in Gross profit was
driven by higher pricing and cost savings from the Company’s
funding-the-growth initiatives, which were partially offset by higher
raw and packaging material costs. This increase in Selling, general and
administrative expenses was primarily due to higher overhead expenses,
which were partially offset by lower advertising expenses. This increase
in overhead expenses was mainly due to negative foreign exchange
transaction costs and higher costs due to inflation in Venezuela.

Colgate’s strong leadership in oral care throughout Latin America
continued during the quarter with toothpaste market share gains year to
date led by Brazil, Central America, Chile and the Dominican Republic.
Strong sales of Colgate Luminous White, Colgate Total Pro Gum Health and
Colgate Triple Action Extra Whitening toothpastes contributed to growth
throughout the region. Colgate strengthened its leadership of the manual
toothbrush market throughout the region, driven by strong sales of
Colgate 360° Surround, Colgate 360° Luminous White and Colgate Triple
Action manual toothbrushes. In mouthwash, Colgate’s year-to-date market
share is at a record high in the region with gains driven by Colgate
Luminous White mouthwash and the relaunch of Colgate Plax mouthwash.

Operating profit in Europe/South Pacific increased 1% in the third
quarter of 2012 to $198 million, or 22.9% of Net sales. The increase in
Operating profit was due to an increase in Gross profit and a decrease
in Selling, general and administrative expenses, both as a percentage of
Net sales. This increase in Gross profit was driven by savings from the
Company’s funding-the-growth initiatives, which were partially offset by
lower pricing. This decrease in Selling, general and administrative
expenses was driven by lower overhead expenses, which were partially
offset by higher advertising expenses.

Operating profit in Greater Asia/Africa increased 14% in the third
quarter of 2012 to $231 million, or 25.8% of Net sales. This increase
was mainly a result of an increase in Gross profit as a percentage of
Net sales. This increase in Gross profit was due to higher pricing and
cost savings from the Company’s funding-the-growth initiatives,
partially offset by higher raw and packaging material costs.

Hill’s Operating profit increased 16% in the third quarter of 2012 to
$147 million, or 27.8% of Net sales. This increase in Operating profit
was due to an increase in Gross profit and a decrease in Selling,
general and administrative expenses, both as a percentage of Net sales.
This increase in Gross profit was driven by higher pricing and cost
savings from the Company’s funding-the-growth initiatives, which were
partially offset by higher raw and packaging material costs. This
decrease in Selling, general and administrative expenses was primarily
due to lower overhead expenses.

Substantially all market share data included in this press release is
compiled from data as measured by Nielsen.

Explanatory Note Regarding Currency Neutral
Estimates

Management’s estimate of earnings per share growth in 2012 on a currency
neutral basis eliminates the impact of period-over-period changes in
foreign exchange rates in the translation of local currency results into
U.S. dollars. Accordingly, for purposes of estimating earnings per share
growth, full year 2012 estimated local currency results, which include
the impact of estimated foreign currency transaction gains and losses,
are translated into U.S. dollars using 2011 average foreign exchange
rates.

Cautionary Statement on Forward-Looking Statements

This press release and the related webcast (other than historical
information) may contain forward-looking statements. Such statements may
relate, for example, to sales or volume growth, organic sales growth,
profit or profit margin growth, earnings growth (including on a currency
neutral basis), financial goals, the impact of currency devaluations,
exchange controls and price controls, including in Venezuela,
cost-reduction plans including the 2012 Restructuring Program, tax
rates, new product introductions or commercial investment levels. These
statements are made on the basis of our views and assumptions as of this
time and we undertake no obligation to update these statements. We
caution investors that any such forward-looking statements are not
guarantees of future performance and that actual events or results may
differ materially from those statements. Investors should consult the
Company’s filings with the Securities and Exchange Commission (including
the information set forth under the caption “Risk Factors” in the
Company’s Annual Report on Form 10-K for the year ended December 31,
2011) for information about certain factors that could cause such
differences. Copies of these filings may be obtained upon request from
the Company’s Investor Relations Department or on the Company’s web site
at http://www.colgatepalmolive.com.

Non-GAAP Financial Measures

The following provides information regarding the non-GAAP financial
measures used in this earnings release and/or the related webcast:

To supplement Colgate’s Condensed Consolidated Income Statements
presented in accordance with accounting principles generally accepted in
the United States of America (GAAP), the Company has disclosed non-GAAP
measures of operating results that exclude certain items. Worldwide
Gross profit, Gross profit margin, Selling, general and administrative
expenses, Selling, general and administrative expenses as a percentage
of Net sales, Other (income) expense, net, Operating profit, Operating
profit margin, Net income attributable to Colgate-Palmolive Company and
Diluted earnings per common share are discussed both as reported (on a
GAAP basis) and excluding costs associated with various business
realignment and other cost-saving initiatives, costs related to the sale
of land in Mexico and the gain from the sale of the Company’s non-core
laundry detergent business in Colombia (non-GAAP). Management believes
these non-GAAP financial measures provide investors with useful
supplemental information regarding the performance of the Company’s
ongoing operations. See “Non-GAAP Reconciliations” for the three and
nine months ended September 30, 2012 and 2011 included with this release
for a reconciliation of these financial measures to the related GAAP
measures.

This release discusses organic sales growth, which is Net sales growth
excluding the impact of foreign exchange, acquisitions and divestments.
Management believes this measure provides investors with useful
supplemental information regarding the Company’s underlying sales trends
by presenting sales growth excluding the external factor of foreign
exchange as well as the impact from acquisitions and divestments. See
“Geographic Sales Analysis Percentage Changes” for the three and nine
months ended September 30, 2012 vs 2011 included with this release for a
comparison of organic sales growth to sales growth in accordance with
GAAP.

The Company uses these financial measures internally in its budgeting
process and as factors in determining compensation. While the Company
believes that these financial measures are useful in evaluating the
Company’s business, this information should be considered as
supplemental in nature and is not meant to be considered in isolation or
as a substitute for the related financial information prepared in
accordance with GAAP. In addition, these non-GAAP financial measures may
not be the same as similar measures presented by other companies.

The Company defines free cash flow before dividends as net cash provided
by operations less capital expenditures. As management uses this measure
to evaluate the Company’s ability to satisfy current and future
obligations, repurchase stock, pay dividends and fund future business
opportunities, the Company believes that it provides useful information
to investors. Free cash flow before dividends is not a measure of cash
available for discretionary expenditures since the Company has certain
non-discretionary obligations such as debt service that are not deducted
from the measure. Free cash flow before dividends is not a GAAP
measurement and may not be comparable to similarly titled measures
reported by other companies. See “Condensed Consolidated Statements of
Cash Flows” for the nine months ended September 30, 2012 and 2011 for a
comparison of free cash flow before dividends to net cash provided by
operations as reported in accordance with GAAP.

(See attached tables for third quarter results.)

Table 1

Colgate-Palmolive Company

Condensed Consolidated Statements of Income

For the Three Months Ended September 30, 2012 and 2011

(Dollars in Millions Except Per Share Amounts) (Unaudited)

2012

2011

Net sales

$

4,332

$

4,383

Cost of sales

1,803

1,921

Gross profit

2,529

2,462

Gross profit margin

58.4

%

56.2

%

Selling, general and administrative expenses

1,501

1,489

Other (income) expense, net

1

(62

)

Operating profit

1,027

1,035

Operating profit margin

23.7

%

23.6

%

Interest expense, net

4

10

Income before income taxes

1,023

1,025

Provision for income taxes

326

349

Effective tax rate

31.9

%

34.0

%

Net income including noncontrolling interests

697

676

Less: Net income attributable to noncontrolling interests

43

33

Net income attributable to Colgate-Palmolive Company

$

654

$

643

Earnings per common share

Basic

$

1.38

$

1.32

Diluted

$

1.36

$

1.31

Average common shares outstanding

Basic

474.9

486.7

Diluted

479.2

490.5

Table 2

Colgate-Palmolive Company

Condensed Consolidated Statements of Income

For the Nine Months Ended September 30, 2012 and 2011

(Dollars in Millions Except Per Share Amounts) (Unaudited)

2012

2011

Net sales

$

12,799

$

12,562

Cost of sales

5,372

5,365

Gross profit

7,427

7,197

Gross profit margin

58.0

%

57.3

%

Selling, general and administrative expenses

4,443

4,314

Other (income) expense, net

37

(35

)

Operating profit

2,947

2,918

Operating profit margin

23.0

%

23.2

%

Interest expense, net

20

37

Income before income taxes

2,927

2,881

Provision for income taxes

932

952

Effective tax rate

31.8

%

33.0

%

Net income including noncontrolling interests

1,995

1,929

Less: Net income attributable to noncontrolling interests

121

88

Net income attributable to Colgate-Palmolive Company

$

1,874

$

1,841

Earnings per common share

Basic

$

3.93

$

3.76

Diluted

$

3.89

$

3.73

Average common shares outstanding

Basic

477.4

489.9

Diluted

481.5

493.4

Table 3

Colgate-Palmolive Company

Condensed Consolidated Balance Sheets

As of September 30, 2012, December 31, 2011 and September 30, 2011

(Dollars in Millions) (Unaudited)

September 30,

December 31,

September 30,

2012

2011

2011

Cash and cash equivalents

$

909

$

878

$

945

Receivables, net

1,857

1,675

1,677

Inventories

1,384

1,327

1,336

Other current assets

611

522

485

Property, plant and equipment, net

3,685

3,668

3,615

Other assets, including goodwill and intangibles

4,978

4,727

4,710

Total assets

$

13,424

$

12,797

$

12,768

Total debt

$

5,246

$

4,810

$

4,757

Other current liabilities

3,397

3,336

3,328

Other non-current liabilities

2,084

2,110

1,813

Total liabilities

10,727

10,256

9,898

Total Colgate-Palmolive Company shareholders' equity

2,507

2,375

2,667

Noncontrolling interests

190

166

203

Total liabilities and shareholders' equity

$

13,424

$

12,797

$

12,768

Supplemental Balance Sheet Information

Debt less cash, cash equivalents and marketable securities*

$

4,256

$

3,860

$

3,740

Working capital % of sales

2.2

%

0.7

%

0.6

%

*

Marketable securities of $81, $72 and $72 as of September 30,
2012, December 31, 2011 and September 30, 2011, respectively, are
included in Other current assets.

Table 4

Colgate-Palmolive Company

Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2012 and 2011

(Dollars in Millions) (Unaudited)

2012

2011

Operating Activities

Net income including noncontrolling interests

$

1,995

$

1,929

Adjustments to reconcile net income including noncontrolling
interests to net cash provided by operations:

Corporate operations include costs related to stock options and
restricted stock awards, research and development costs, Corporate
overhead costs, restructuring and related implementation costs and
gains and losses on sales of non-core product lines and assets.

Corporate Operating profit for the three months ended September 30,
2012 includes costs of $3 associated with global business
realignment and other cost-saving initiatives and costs of $7
related to the sale of land in Mexico.

Corporate Operating profit for the nine months ended September 30,
2012 includes costs of $21 associated with global business
realignment and other cost-saving initiatives and costs of $20
related to the sale of land in Mexico.

For the three and nine months ended September 30, 2011, Corporate
Operating profit included a gain on the sale of the Company's
non-core laundry detergent business in Colombia of $207, costs of
$168 associated with global business realignment and other
cost-saving initiatives and costs of $7 related to the sale of
land in Mexico.

Table 6

Colgate-Palmolive Company

Geographic Sales Analysis Percentage Changes

For the Three Months Ended September 30, 2012 vs 2011

(Unaudited)

COMPONENTS OF SALES CHANGE

Pricing

Coupons

Sales

3 Months

Consumer &

Change

Organic

As Reported

Organic

Ex-Divested

Trade

Foreign

Region

As Reported

Sales Change

Volume

Volume

Volume

Incentives

Exchange

Total Company

(1.0

)%

5.0

%

2.0

%

2.0

%

2.0

%

3.0

%

(6.0

)%

Europe/South Pacific

(11.0

)%

(2.5

)%

(1.5

)%

(1.5

)%

(1.5

)%

(1.0

)%

(8.5

)%

Latin America (1)

-

%

9.0

%

2.5

%

3.5

%

3.5

%

5.5

%

(8.0

)%

Greater Asia/Africa

5.0

%

11.5

%

7.5

%

7.5

%

7.5

%

4.0

%

(6.5

)%

Total International

(2.0

)%

6.0

%

2.5

%

3.0

%

3.0

%

3.0

%

(7.5

)%

North America

2.5

%

2.5

%

2.0

%

2.0

%

2.0

%

0.5

%

-

%

Total CP Products

(1.0

)%

5.5

%

2.5

%

3.0

%

3.0

%

2.5

%

(6.0

)%

Hill's

(1.5

)%

1.5

%

(2.5

)%

(2.5

)%

(2.5

)%

4.0

%

(3.0

)%

Emerging Markets (2)

1.5

%

9.5

%

4.5

%

5.0

%

5.0

%

4.5

%

(7.5

)%

Developed Markets

(4.0

)%

-

%

(1.0

)%

(1.0

)%

(1.0

)%

1.0

%

(4.0

)%

Notes:

(1) The Company's non-core laundry detergent business in
Colombia was sold on July 29, 2011.

The impact of the sale of the Company's non-core laundry detergent
business in Colombia on third quarter sales and volume was 1.0% for
Latin America.